If you’ve had a default placed on your credit file it can affect your financial situation in a number of ways. The drop in credit rating makes it more difficult to obtain borrowing, and in some cases, it can even affect your employment.
Defaults remain on a credit file for six years so this is a long-term impact rather than a temporary inconvenience, but if you believe the default is incorrect it’s important to contest it so your credit record reflects the true situation.
But how can you contest a default on your credit file, and what is the first step to take?
Three main credit reference agencies exist in the UK – Experian, Equifax, and TransUnion. The information held with each one can differ, however, so it’s important to order a copy from each agency.
If a default appears on one report, it could also be present on another, in which case you may need to contest an entry two or more times.
When a default is on your credit file, lenders believe there’s a likelihood you won’t pay your debts on time and may even stop repayments altogether - this illustrates just how damaging a default can be and why you need to contest it if it’s incorrect.
So why might a default marker have been incorrectly placed? Lenders and other creditors do make mistakes when reporting information to credit reference agencies, with errors potentially including:
If you would like more information on contesting a default marker, or any other aspect of your credit rating, please call Scotland Debt Solutions. We specialise in helping Scottish residents to escape debt, and can arrange a same-day meeting free-of-charge at one of our offices around Scotland.
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Our Scottish based team can help advise you on your debt problems.